It’s a good year to have high protein wheat.
With a big crop of low protein spring wheat being harvested, farmers who have good protein levels won’t face the discounts most wheat growers are facing.
However, they won’t be getting many true premiums.
“The discounts for delivering low protein have widened a lot,” said Jon Driedger of FarmLink Marketing Solutions. “We have lots of bushels of low protein.”
Driedger said farmers aren’t getting many premiums for wheat with protein levels higher than 13.5 percent, but discounts are often 30 cents per bushel per percentage point for protein lower than 13.5 percent. A few weeks ago the discount was only 10 to 20 cents.
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Farmers are harvesting big crops of spring wheat in the northern U.S. Great Plains and on the Canadian Prairies, but there are widespread reports of lower than average protein levels. That should make protein a valued commodity.
“Last year there was almost no premium because everyone had sky-high protein,” said Driedger.
However, farmers with high protein wheat are having trouble getting a premium because the world has lots of wheat. Buyers don’t need to chase high-protein wheat, although they are happy to accept it.
“There certainly is the need for high protein product,” said Rich Nelson of Allendale, Inc.
“We’re hearing of great yields but low protein content.”
